HDFC Bank spurts 9% to pip Reliance as second-most valued company
NEW DELHI: HDFC Bank, whose market capitalisation has been neck and neck with Reliance Industries for the past couple of months, spurted over 9 per cent in Friday’s trade to have a comprehensive lead over the latter after the bank said the RBI has removed FII ban limit on the counter.
The banking stock soared 9.24 per cent to hit a high of Rs 1,450 on BSE. At the prevailing price, the lender’s m-cap stood at Rs 3.67 lakh crore, which was quite ahead of Reliance Industries’ Rs 3.44 lakh-crore market value.
Shares of Reliance Industries were trading flat at Rs 1,065.50, after the initial fall.
The m-cap of the two companies had earlier come closer in November and September 2016, before they locked horns this year.
The RBI has lifted restrictions on FII buying as the foreign ownership in the lender has fallen below 72 per cent.
"Management indicated that the total foreign ownership currently stands at 71.85 per cent which implies a room of 0.15 per cent of the capital and potentially indicates 3.8m (million) shares of HDFC Bank available to be bought by foreigners through open market," said Macquarie in a note.
Macquarie said foreign investors will fill up the gap immediately in the coming weeks and that HDFC Bank is likely to go back into the FII caution or restricted list of the RBI.
The banking stock soared 9.24 per cent to hit a high of Rs 1,450 on BSE. At the prevailing price, the lender’s m-cap stood at Rs 3.67 lakh crore, which was quite ahead of Reliance Industries’ Rs 3.44 lakh-crore market value.
Shares of Reliance Industries were trading flat at Rs 1,065.50, after the initial fall.
The m-cap of the two companies had earlier come closer in November and September 2016, before they locked horns this year.
The RBI has lifted restrictions on FII buying as the foreign ownership in the lender has fallen below 72 per cent.
"Management indicated that the total foreign ownership currently stands at 71.85 per cent which implies a room of 0.15 per cent of the capital and potentially indicates 3.8m (million) shares of HDFC Bank available to be bought by foreigners through open market," said Macquarie in a note.
Macquarie said foreign investors will fill up the gap immediately in the coming weeks and that HDFC Bank is likely to go back into the FII caution or restricted list of the RBI.
